Rachel Reeves will be Chancellor “for the whole of this Parliament,” Downing Street has said, following questions over whether her future in Number 11 was guaranteed amid high Government borrowing costs.
Sir Keir Starmer said Ms Reeves had his “full confidence” and was doing a “fantastic job” but had twice declined earlier to say she would stay in the role until the next general election when asked by journalists earlier on Monday.
Asked why the Prime Minister had been unable to confirm whether her long-term future was secure, his official spokesman said: “You heard from the Prime Minister this morning.
“He was very explicit (that) he has full confidence in the Chancellor and he’ll be working with her in the role of Chancellor for the whole of this Parliament.”
The pound fell to a fresh 14-month low on Monday, slumping another 0.6% to 1.21 US dollars after last week hitting its lowest level against the dollar since November 2023.
UK government bonds – also known as gilts – continued to see 10-year yields hit fresh highs not seen since 2008, at 4.9%.
